The U.S. Treasury has found an extra $48 million a year in their budget just by making all government payments electronically. Instead of taking a check to get a social security cash advance to a check cashing service, now seniors will have to have a bank account or use a special debit card so they can receive their government payments. It isn’t just the Social Security program that is implementing this change. All government payments are henceforward to be made electronically.

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It’s not bad enough the stock market crashed, the housing prices plunged, and a lot of wealth has disappeared for retired couples. Activities and plans are being changed as the bad economic news impacts older generations. However, even if you are years away from retiring, you might want to keep tabs on what’s happening with Social Security in 2010 also. This is the first year where the program is now paying out more in benefits than it is receiving in revenues from younger workers.  The deficit is estimated to be around $29 billion over all.

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Every year it seems as though goods and services get more expensive and our current salaries do not, which can cause a financial problem if we are not truly careful in our planning. Financial planning is very important and creating a specific budget based on our income and spending is essential to make sure that we do not run out of money before we receive income. If we can lay out our ins and outs and see where the shortfalls will be, we can be better prepared for the inevitable. Proper budgeting may not help us avoid a negative balance, but we can better anticipate its arrival.

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There’s some good reasons people getting set to retire pick up and move to Florida. They’re looking to get the most bang for their buck, now that they will be on a fixed income and most of their high earning days are over. At that point, the thing that becomes more important is the quality of life based on what they have stored away for retirement in various investment accounts. That quality of life can be severely impacted by simple things like taxes, cost of living, and even energy bills. (more…)

Even with the stomach-churning twists and turns of 2008 and 2009, most people who continued contributing have recovered their original portfolio value. However, the stock market drop has made it obvious that as a vehicle for retirement, certain safeguards need to be put in place. For one, it’s important to understand your 401K investment strategy based on your age. Two, a 401K should not be the only way to invest your funds for retirement. Finally, 401Ks need to be managed by someone who understands the market, as the risks increase with a laissez-faire attitude. (more…)

While it can be quite easy to grow accustomed to a certain lifestyle when our weekly salary can help cover it, many don’t give a second thought to how they will maintain their current lifestyle once it comes time to retire. Even something as simple as going out to dinner every night can put a crimp in the budget of someone who is now on a fixed income. Once you retire, you do not have the luxury of extra hours to fall back on in order to generate extra cash to cover your monthly expenses. Once retirement age arrives, many choose to continue working in order to maintain the lifestyle they have grown accustomed to, or they choose to make drastic lifestyle changes in order to make their retirement money last longer. While these are the most common options, they should not be the only ones you have to choose from. Here are some ways to save enough money for retirement so you can still enjoy the lifestyle you have grown accustomed to. (more…)

The thought of retirement should be filled with excitement as you enter your golden years. But with recent stock market issues and economic downturns, we worry if we have enough money to live on when we eventually retire, as we will not want to have to take cash advances during this period. One of the biggest retirement fears is that we may outlive our money. Now that things have changed in the economic environment, it is time to also change our retirement planning to adjust for what has happened. There are a few ways to help us save for our retirement to alleviate any concerns about outliving our income. (more…)

Of all the age groups affected by the recession, the baby boomers who are retiring face the harshest consequences. They have retirement portfolios that might have dropped anywhere from 20 to 40%. They don’t have extra years of income to make up the drop, unless they choose to stay working in part time jobs past their full retirement age. Health care costs are high. If that weren’t enough, the federal government has made it clear that there will probably be no cost of living increase in Social Security for the next two to three years. What are steps that need to be taken to make sure you won’t run out of money in your old age? (more…)

In the current financial climate it is important to have a steady income, lower cost of living and good emergency financial plans in place. This is particularly important for those entering or already living in their retirement years.

Usually the process of arranging an easy and comfortable retirement begins with the living arrangements. A majority of retirees make plans to sell their homes and relocate to a more affordable location. This can often include apartments or retirement communities, but they will still need to be in places that have a lower cost of living. This means that selecting an affordable retirement city or town is the wisest step in planning for the “golden years”. (more…)

No matter how old you are, once you secure your first job you should begin to save for retirement. As you know, the earlier you start the more money you will have when you finally decide to hang it up for good. Compound interest is a great thing, and this is just one reason why you need to get your retirement savings into high gear as early as possible.

The way you save for retirement is up to you. Some people rely solely on one plan, such as a 401K, that they have through their employer. This is a particularly good idea if your company offers a “match” up to a certain percentage. After all, who doesn’t want free money?

Of course, you don’t need the help of your employer in order to save for retirement. You can open your own account, such as a traditional or Roth IRA. Both of these are perfect for those who want to plan their own retirement while also taking advantage of many tax benefits.

Finally, don’t forget that you can also save cash. This may not be the best way to earn interest on your money, but there is nothing wrong with keeping a bit of cash in an online savings or other high yield account. This may not be your primary retirement account, but it can go a long way when everything is said and done.

No matter how old you are or how much money you earn you should be saving for retirement. Are you on the ball? Or have you fallen behind?

photo credit: pfala